SAVE THE WORLD AIR, INC. WARRANT TO PURCHASE COMMON STOCK VOID AFTER 5:00 P.M. California Time on August 31, 2007
EXHIBIT 10.4
THIS WARRANT AND ANY SHARES OF COMMON STOCK FOR WHICH THIS WARRANT MAY BE EXERCISED HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED FOR SALE UNDER ANY STATE
SECURITIES LAWS (COLLECTIVELY, “SECURITIES LAWS”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED UNLESS REGISTERED OR QUALIFIED FOR SALE UNDER ALL APPLICABLE SECURITIES LAWS OR UNLESS,
IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER, ANY SUCH OFFER, SALE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION OR QUALIFICATION
REQUIREMENTS OF SUCH SECURITIES LAWS.
| No. _________ | _______________, 2005 |
SAVE THE WORLD AIR, INC.
WARRANT TO PURCHASE COMMON STOCK
VOID AFTER 5:00 P.M. California Time on August 31, 2007
THIS CERTIFIES that, for the value received, _______________ (the “Holder”) is entitled, upon
the terms and subject to the conditions hereinafter set forth, at any time on or after the date of
this Warrant and on or prior to 5:00 p.m. California time on August 31, 2007 (the “Expiration
Time”), but not thereafter, to subscribe for and purchase, from SAVE THE WORLD AIR, INC., a Nevada
corporation (the “Company”), up to _______________ (_________) shares of the Company’s Common Stock
(the “Shares”) at a purchase price per share equal to $1.00 (the “Exercise Price”).
(a) The purchase rights represented by this Warrant are exercisable by the Holder, in whole or
in part, at any time after the date hereof and before the Expiration Time by the surrender of this
Warrant and the Notice of Warrant Exercise annexed hereto duly executed at the office of the
Company, in Agoura Hills, California (or such other office or agency of the Company as it may
designate by notice in writing to the Holder at the address of the Holder appearing on the books of
the Company), and upon payment of an amount equal to the aggregate Exercise Price for the number of
Shares thereby purchased (by cash or by check or certified bank check payable to the order of the
Company in an amount equal to the purchase price of the shares thereby purchased); whereupon the
Holder shall be entitled to receive a stock certificate representing the number of Shares so
purchased. The Company agrees that if at the time of the surrender of this Warrant and purchase of
the Shares, the Holder shall be entitled to exercise this Warrant, the Shares so purchased shall be
and be deemed to be issued to such holder as the record owner of such Shares as of the close of
business on the date on which this Warrant shall have been exercised as aforesaid.
(b) Upon partial exercise of this Warrant, the Holder shall be entitled to receive from the
Company a new Warrant in substantially identical form for the purchase of that number of Shares as
to which this Warrant shall not have been exercised. Certificates for Shares purchased hereunder
shall be delivered to the Holder within a reasonable time after the date on which this Warrant
shall have been exercised as aforesaid.
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No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. If any adjustment to the Exercise Price hereunder should result in an Exercise
Price of less than $0.01, such adjustment shall be rounded to the nearest $0.01..
6. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall be a Saturday or a
Sunday or shall be a legal holiday in the United States or the State of California, then such
action may be taken or such right may be exercised on the next succeeding business day.
(a) If at any time the Company proposes (A) the acquisition of the Company by another entity
by means of any transaction or series of related transactions (including, without limitation, any
reorganization, merger, consolidation or stock issuance) that results in the transfer of fifty
percent (50%) or more of the then outstanding voting power of the Company; or (B) a sale of all or
substantially all of the assets of the Company, then the Company shall give the Holder ten (10)
days notice of the proposed effective date of the transaction. If this Warrant has not been
exercised by the effective date of such transaction, this Warrant shall be exercisable into the
kind and number of shares of stock or other securities or property of the Company or of the entity
resulting from such merger or acquisition to which such Holder would have been entitled if
immediately prior to such acquisition or merger, it had exercised this Warrant. The provisions of
this Section 7(a) shall similarly apply to successive consolidations, mergers, sales or
conveyances.
(b) If the Company at any time shall, by subdivision, combination or reclassification of
securities or otherwise, change any of the securities to which purchase rights under this Warrant
exist into the same or a different number of securities of any class or classes, this Warrant shall
thereafter be to acquire such number and kind of securities as would have been
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issuable as the result of such change with respect to the securities which were subject to the
purchase rights under this Warrant immediately prior to such subdivision, combination,
reclassification or other change. If the Shares are subdivided or combined into a greater or
smaller number of Shares, the Exercise Price under this Warrant shall be proportionately reduced in
case of subdivision of shares or proportionately increased in the case of combination of shares, in
both cases by the ratio which the total number of Shares to be outstanding immediately after such
event bears to the total number of Shares outstanding immediately prior to such event.
(c) No adjustment on account of cash dividends or interest on the Shares or other securities
purchasable hereunder will be made to the Exercise Price under this Warrant.
(a) In no event will the Holder make a disposition of this Warrant or the Shares unless and
until, if requested by the Company, it shall have furnished the Company with an opinion of counsel
satisfactory to the Company and its counsel to the effect that appropriate action necessary for
compliance with the Securities Act of 1933, as amended (the “Act”) relating to sale of an
unregistered security has been taken. Notwithstanding the foregoing, the restrictions imposed upon
the transferability of the Shares shall terminate as to any particular Share when (i) such security
shall have been sold without registration in compliance with Rule 144 under the Act, or (ii) a
letter shall have been issued to the Holder at its request by the staff of the Securities and
Exchange Commission or a ruling shall have been issued to the Holder at its request by such
Commission stating that no action shall be recommended by such staff or taken by such Commission,
as the case may be, if such security is transferred without registration under the Act in
accordance with the conditions set forth in such letter or ruling and such letter or ruling
specifies that no subsequent restrictions on transfer are required, or (iii) such security shall
have been registered under the Act and sold by the Holder thereof in accordance with such
registration.
(b) Subject to the provisions of Section 8(a) hereof, this Warrant and all rights hereunder
are transferable, in whole or in part, upon surrender of the Warrant with a properly executed
assignment at the principal office of the Company.
(c) The stock certificates representing the Shares and any securities of the Company issued
with respect thereto shall be imprinted with legends restricting transfer except in compliance with
the terms hereof and with applicable federal and state securities laws.
(a) Governing Law. This Warrant shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts made and to be performed wholly within
such state.
(b) Restrictions. The Holder acknowledges that the Shares acquired upon the exercise
of this Warrant may have restrictions upon its resale imposed by state and federal securities laws.
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(c) Waivers Strictly Construed. With regard to any power, remedy or right provided
herein or otherwise available to any party hereunder (i) no waiver or extension of time shall be
effective unless expressly contained in a writing signed by the waiving party; and (ii) no
alteration, modification or impairment shall be implied by reason of any previous waiver, extension
of time, delay or omission in exercise, or other indulgence.
(d) Complete Agreement and Modifications. This Warrant constitutes the Company’s and
Holder’s entire agreement with respect to the subject matter hereof and supersedes all agreements,
representations, warranties, statements, promises and understandings, whether oral or written, with
respect to the subject matter hereof. This Warrant may not be amended, altered or modified except
by a writing signed by the Company and the Holder of this Warrant.
| SAVE THE WORLD AIR, INC. |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
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TO: SAVE THE WORLD AIR, INC.
(1) The undersigned hereby elects to purchase ____________ shares of Common Stock (the
“Shares”) of Save the World Air, Inc. pursuant to the terms of the attached Warrant, and tenders
herewith payment of the purchase price in full, together with all applicable transfer taxes, if
any.
(2) Please issue a certificate or certificates representing the Shares in the name of the
undersigned or in such other name as is specified below:
Address:
(3) The undersigned confirms that the Shares are being acquired for the account of the
undersigned for investment only and not with a view to, or for resale in connection with, the
distribution thereof and that the undersigned has no present intention of distributing or selling
the Shares.
(4) The undersigned represents and warrants that he or she is either (you must initial one
choice and fill in the requested information):
_______________FOR U.S. INVESTORS ONLY: an “accredited investor” as defined in Rule 501(a) of
Regulation D, a copy of which definition the investor acknowledges receiving and reviewing,
and resident of the State of __________________; or
_______________FOR NON-U.S. PERSONS ONLY: not a “U.S. person” as defined in Rule 902 of
Regulation S, a copy of which definition the investor acknowledges receiving and reviewing,
and a citizen of the country of __________________ and a resident of the country of
__________________,
and, in either case, makes the following further representation:
I, THE UNDERSIGNED, REPRESENT THAT I HAVE A PRE-EXISTING PERSONAL OR BUSINESS RELATIONSHIP
WITH THE COMPANY, ANY OFFICER, DIRECTOR OR CONTROLLING PERSON THEREOF OR HAVE, THROUGH
MYSELF OR THROUGH MY UNAFFILIATED PROFESSIONAL ADVISER, THE BUSINESS OR FINANCIAL
EXPERIENCE TO PROTECT MY INTERESTS IN CONNECTION WITH MY SUBSCRIPTION HERETO.
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FURTHER, I AM PURCHASING THE SECURITIES OFFERED HEREBY FOR INVESTMENT AND NOT WITH A VIEW
TOWARD DISTRIBUTION THEREOF.
(5) The undersigned accepts such shares subject to the restrictions on transfer set forth in
the attached Warrant.
| (Date) | (Signature) | ||||
| (Print Name) | |||||
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